What Happens Between Contract and Closing in Ohio?
For many buyers and sellers, signing the purchase agreement feels like crossing the finish line.
In reality, it’s the beginning of an important process that takes place between contract and closing.
While much of the work happens behind the scenes, several critical steps must be completed before ownership can officially transfer. Understanding what happens during this period can help buyers, sellers, Realtors, and lenders avoid surprises and keep transactions moving smoothly.
Step 1: Earnest Money Is Deposited
Shortly after the purchase agreement is signed, the buyer typically deposits earnest money according to the terms of the contract.
These funds are generally held in escrow until closing and demonstrate the buyer’s commitment to moving forward with the transaction.
Step 2: Title Work Begins
One of the most important steps is the title examination.
The title company reviews public records to confirm ownership and identify any issues that could impact the transaction, including:
- Liens or judgments
- Ownership discrepancies
- Recording errors
- Easements or restrictions
- Unreleased mortgages
The goal is to ensure the property has a clear and marketable title before closing.
Step 3: Home Inspections Take Place
Many buyers schedule a home inspection shortly after going under contract.
The inspection helps buyers better understand the condition of the property and identify potential repairs or maintenance concerns.
Depending on the results, buyers and sellers may negotiate repairs, credits, or other adjustments.
Step 4: Financing Moves Through Underwriting
If the buyer is obtaining a mortgage, the lender begins the underwriting process.
This includes reviewing:
- Income and employment
- Credit history
- Assets and reserves
- The property itself
Lenders may request additional documentation during this stage, so timely responses are important.
Step 5: The Property Is Appraised
Most financed transactions require an appraisal.
The appraisal helps the lender determine whether the property’s value supports the loan amount being requested.
If the appraisal comes in lower than expected, additional negotiations may be necessary before moving forward.
Step 6: Title Issues Are Resolved
If the title examination uncovers problems, they must be addressed before closing.
This may include:
- Paying off old liens
- Obtaining releases of prior mortgages
- Correcting ownership documents
- Resolving recording discrepancies
The sooner these issues are identified, the less likely they are to delay closing.
Step 7: Closing Documents Are Prepared
As the transaction moves toward closing, the title company and lender prepare the documents needed to transfer ownership and finalize financing.
The settlement statement is finalized, closing costs are calculated, and all parties are coordinated for the closing appointment.
Step 8: Final Walk-Through
Shortly before closing, buyers typically perform a final walk-through of the property.
This gives buyers an opportunity to confirm the property is in the agreed-upon condition and that any negotiated repairs have been completed.
Step 9: Closing Day
On closing day, all parties sign the necessary documents, funds are transferred, and ownership is officially conveyed.
Once documents are signed and recorded, the buyer receives ownership of the property and the transaction is complete.
Why Working With the Right Title Company Matters
Many of the most important parts of a real estate transaction happen between contract and closing.
At Expert Title Escrow Agency, our in-house title examinations allow us to identify and resolve issues early, helping reduce delays and keep transactions on schedule.
Learn more about our title and closing services in Dayton, Ohio.
Final Takeaway
The period between contract and closing may seem quiet from the outside, but it is one of the busiest parts of the entire transaction.
Understanding the process can help buyers and sellers feel more confident and prepared as they work toward a successful closing.